Armstrong Bank v. Christopher N. Carter

26-02001 IN THE DISTRICT COURT OF CHEROKEE COUNTY STATE OF OKLAHOMA Armstrong Bank, an Oklahoma Banking Institution Plaintiff vs. Christopher N. Carter; Unknown spouse of Christopher N. Carter, if any; Board of County Commissioners of Cherokee County, Oklahoma; Cherokee County Treasurer; Occupant(s) and Spouse(s), if any, Real names unknown, of the Premises, 504 South Water Ave., Tahlequah, OK 74464 Defendants Case No. CJ-26-33 FORECLOSURE PETITION This is an attempt to collect a debt, and any information Obtained may be used for that purpose. Not withstanding any allegation to the contrary contained herein, this is in no way an attempt to collect a debt that may have otherwise been discharged in Bankruptcy. COMES NOW the Plaintiff, and for its cause of action against the defendants, alleges and states: Count I 1. That on or about October 30, 2010, Christopher N. Carter, for a good and valuable consideration, made, executed and delivered to ARMSTRONG BANK a certain promissory note in the sum of $51,623.12 plus interest thereon at the initial rate of 7.50% per annum, and thereafter at the rate as adjusted by the variable rate Note attached hereto, both interest and principal payable in consecutive monthly payments, beginning on November 30, 2010, and continuing each month thereafter, in 180 monthly installments until the principal and interest be fully paid. That Plaintiff is the owner and holder of said note being sued upon and has standing to bring the suit herein, a copy of which note is attached hereto as Exhibit A. 2. That at the same time and on the same date and as a part and parcel of the same transaction, and for the purpose of securing payment of said promissory note, Christopher N. Carter, a single person, made, executed and delivered to ARMSTRONG BANK, a real estate mortgage covering the following described tract of real estate, situated in Cherokee County, State of Oklahoma, to-wit: Lot 3 in Block 115 in the City of Tahlequah, Cherokee County, Oklahoma, according to the recorded plat thereof. Said mortgage being duly recorded in Book 998 at Page 291 in the office of the County Clerk of Cherokee County, Oklahoma, after the required mortgage tax was paid thereon. That Plaintiff is the owner and holder of said mortgage being foreclosed herein, a copy of which is attached hereto as Exhibit B together with any assignment thereof. 3. That said mortgage, hereinabove mentioned, provides that if default occurs under the note for which it is security that the holder thereof is entitled to foreclose said mortgage and for all lawful costs in connection therewith, and for a reasonable attorney’s fee, the total cost of which is to be determined upon final hearing. 4. That Plaintiff has elected as provided in the mortgage, to foreclose and will elect, at time judgment is rendered, to waive appraisement or not. 5. That the Unknown Spouse of Christopher N. Carter, if any, is named as a defendant herein for the reason that said defendant may be claiming an interest in and to the subject property, and for the further purpose of adjudicating the priority of said interest, if any. Plaintiff alleges that the interest of said defendant, if any, is subsequent, junior and inferior to the mortgage and lien of the Plaintiff herein. 6. That Occupant(s) and Spouse(s), if any, Real name(s) unknown, of the Premises, 504 South Water Ave., Tahlequah, OK 74464 are named as defendant herein for the reason that said defendant may be claiming an interest in and to the subject property, and for the further purpose of adjudicating the priority of said interest, if any. Plaintiff alleges that the interest of said defendant, if any, is subsequent, junior and inferior to the mortgage and lien of the Plaintiff herein. 7. That Board of County Commissioners of Cherokee County, Oklahoma and Cherokee County Treasurer are named as defendants herein for the reason that said defendants may be claiming an interest in and to the subject property by virtue of unpaid taxes, plus penalty and interest , or otherwise, and for the further purpose of adjudicating the priority of said interest, if any. Plaintiff alleges that the interest of said defendant, if any, is subsequent, junior and inferior to the mortgage and lien of the Plaintiff herein. 8. That said note is in default and that the installments since and including the payment due October 30, 2025 are in arrears; and, that after allowing all just credits to the defendant(s) there remains due and unpaid the sum of $61,253.49, together with accrued interest as of February 2, 2026 in the sum of $5,511.13, plus interest thereon at the rate of 11.25% per cent per annum, or as adjusted by the Note attached hereto, from February 2, 2026, until paid, accrued and unpaid late charges in the sum of $24.09, and other fees including all subsequent advances by Plaintiff, if any, for taxes, insurance premiums or expenses necessary for the preservation of the subject property, abstracting expenses,, all costs of this action, reasonable attorney’s fees and costs as the Court may allow, all accrued and accruing herein. That all of said sums are just, due and unpaid and by the terms of said note and mortgage, Plaintiff is entitled to declare the above balance immediately due and payable and is entitled to judgment for said sum and foreclosure of its mortgage on the subject property, for which amounts said mortgage is a first, prior, and superior lien upon the real estate and premises above described. A. That said mortgage specifically provides in case of foreclosure said real estate may be sold with or without appraisement, at the option of the Plaintiff, and that such option is to be exercised at the time judgment is rendered in any foreclosure thereof. B. That the Plaintiff is the owner and holder of the note and mortgage described hereinabove, and has complied with all of the terms, conditions, and provisions of said note and mortgage and is duly empowered to bring this suit. C. That by reason of the premises described and said deeds, judgments, and pending actions described and referred to above, each of the defendants above named are claiming some right, title, lien, estate, encumbrance, claim, assessment, or interest in and to the real property involved herein, but, that in fact said defendants above named, and each of them, have no right, title, lien, estate, encumbrance, claim, assessment, or interest either at law or in equity in and to the real property described herein, which is superior to the mortgage and lien of the Plaintiff, and that such claims of the defendants as above set forth, as well as any other right, title, or interest which said defendants, or any, or either of them, ever had, now have, or claim to have, in or to said property are subsequent, junior, and inferior to the mortgage and lien of the Plaintiff herein, and said defendants should assert any rights or claim they may have in the subject property so they may be determined herein, and priorities established. 8. NOTICE OF RIGHT TO DEBT VALIDATION: In accordance with the Fair Debt Collection Practices Act, Title 15 U.S.C.A. sec. 1692 (g), if applicable, unless the person or entity responsible for the payment of the above debt, within thirty (30) days after receipt of this notice, disputes that validity of the debt, or any portion thereof, the debt will be assumed to be valid; and if said person or entity notifies the undersigned attorney for Plaintiff in writing within said thirty (30) day period that the debt, or any portion thereof, is disputed, said attorney will obtain verification of the debt and a copy of such verification will be mailed to said person or entity by the undersigned attorney for Plaintiff; and upon written request by you within the thirty (30) day period, the undersigned attorney for Plaintiff will provide the name and address of the original creditor, if different from the current creditor. WHEREFORE, premises considered, Plaintiff prays that it have judgment, in personam and in rem, against Christopher N. Carter, for the sum of $61,253.49, together with accrued interest as of February 2, 2026 in the sum of $5,511.13 in the sum of $5,511.13, plus interest thereon at the rate of 11.25% per cent per annum, or as adjusted by the Note attached hereto, from February 2, 2026, until paid, accrued and unpaid late charges in the sum of $24.09, until paid, accrued and unpaid late charges in the sum of $24.09, and other fees including all subsequent advances by Plaintiff, if any, for taxes, insurance premiums or expenses necessary for the preservation of the subject property, abstracting expenses, all costs of this action, reasonable attorney’s fees and costs as the Court may allow, all accrued and accruing herein, and for judgment, in rem, against all defendant(s), and all other relief the Court may find proper. FURTHER, premises considered, Plaintiff prays judgment be entered against all the defendant(s) herein, that all of the defendant(s) be required to appear to assert any right, title or interest which they have, or claim to have, in and to the real estate and premises; and, That said mortgage be foreclosed and that the same be declared a valid first, prior and superior lien upon the subject real estate, for and in the amounts above set forth, and ordering said real estate and premises described in Paragraph 2 hereinabove sold, for cash, with or without appraisement, as the Plaintiff may elect at the time judgment is entered, subject to unpaid taxes, advancements by Plaintiff for taxes, insurance premiums, or expenses necessary for the preservation of the subject property, to satisfy said judgment, and that the proceeds arising therefrom be applied to the payment of the costs herein, and the payments and satisfaction of the judgment, mortgage and lien of Plaintiff, and that the surplus, if any, be paid into Court to abide the further order of the Court; and, That all right, title and interest of said defendant(s), and each of them, if any, in and to said real estate, be adjudged subject, junior and inferior to the mortgage, lien and judgment of Plaintiff. and that upon confirmation for such sale, the defendant(s) herein, and each of them, and all persons claiming by, through or under them since the commencement of this action, be forever barred, foreclosed and enjoining from asserting or claiming any right, title, interest, estate or equity of redemption in or to said premises, or any part thereof; and, That Plaintiff have such other and further relief as may be just and equitable, premises considered. By: Rex Livingston, OBA# 11906 Attorney for Plaintiff P.O. Box 111 Braggs, Oklahoma 74423 Phone (918) 681-0803 Attorney Lien Claimed: Rex Livingston, OBA# 11906 STATE OF OKLAHOMA ) COUNTY OF Muskogee ) ss. VERIFICATION I, Rex Livingston, of lawful age, and being first duly sworn, upon oath do hereby state that I am the ATTORNEY AND AGENT of Plaintiff, and have been authorized by Plaintiff to verify the foregoing PETITION, that I have read and understand the same, and that the matters set forth therein are true and correct to the best of my knowledge, information, and belief. DATED this 17th day of February, 2026. Rex Livingston Subscribed and sworn to before me, the undersigned Notary Public, this 17th day of February, 2026. Jody Williams Notary Public My commission expires: 7-19-2027 ***FAIR DEBT COLLECTION PRACTICES ACT NOTIFICATION*** IMPORTANT NOTICE REGARDING YOUR RIGHTS UNDER FEDERAL LAW This communication is from a "debt collector" as defined by law. Unless you notify this office within thirty (30) days after receiving this notice that you dispute the validity of the debt, or any portion of the debt, this office will assume that the debt is valid. This dispute may be because of the fact you have determined the debt is fraudulent or the result of identity theft. If you notify this office in writing within thirty (30) days from receipt of this notice, this office will: obtain verification of the debt (or obtain a copy of the Judgment if the debt has been reduced to Judgment) and mail the verification to you. In addition, if you request from this office in writing within thirty (30) days after receipt of this notice, this office will also provide you with the name and address of the original creditor, if different from the current creditor. We will also address any dispute you may have regarding fraud or identity theft within said time frame. You should seek the advice of an attorney if you have any questions. This Fair Debt Collection Practices Act Notification is separate and apart from your obligations, rights and remedies to any Summons and Petition. Any Summons/Petition and this notice have separate remedies and time frames, please note them closely. They are mutually exclusive and each is a separate matter which needs your attention. CHRISTOPHER N CARTER 10 STICK ROSS CIR TAHLEQUAH OK 74464-9999 ARMSTRONG BANK 1401 S MUSKOGEE PO BOX 788 TAHLEQUAH, OK 74464-0788 Borrower's Name and Address "I" includes each borrower above jointly and severally. LENDER'S NAME AND ADDRESS "You" means the lender, its successors and assigns. Loan Number _______________________ Date 10/30/10 Maturity Date 10/30/25 Loan Amount $51,623.12 Renewal Of 0 For value received, I promise to pay to you, or your order, at your address listed above the PRINCIPAL sum of Fifty one thousand six hundred twenty three & 12/100 Dollars $51,623.12 [X] Single Advance: I will receive all of this principal sum on 10/30/10. No additional advances are contemplated under this note. [ ] Multiple Advance: The principal sum shown above is the maximum amount of principal I can borrow under this note. On ____________, I will receive the amount of $__________________ and future principal advances are contemplated. Conditions: The conditions for future advances are [ ] Open End Credit: You and I agree that I may borrow up to the maximum principal sum more than one time. This feature is subject to all other conditions and expires on ________________ [ ] Closed End Credit: You and I agree that I may borrow (subject to all other conditions) up to the maximum principal sum only one time. INTEREST: I agree to pay interest on the outstanding principal balance from October 30, 2010 at the rate of 7.50% per year until the first scheduled rate change - 10/30/11. [X] Variable Rate: This rate may then change as stated below. [X] Index Rate: The future rate will be 4.25% above the following index rate: minimum prime lending rate for large U.S. money center commercial banks as published in the money rate section of the Wall Street Journal [ ] No Index: The future rate will not be subject to any internal or external index. It will be entirely in your control. [X] Frequency and Timing: The rate on this note may change as often as annually. A change in the interest rate will take effect On your scheduled rate change date if the index changes Limitations: During the term of this loan, the applicable annual interest rate will not be more than 21.00% or less than 7.50%. The rate may not change more than N/A% each N/A%. Effect of Variable Rate: A change in the interest rate will have the following effect on the payments: [ ] The amount of each scheduled payment will change. [X] The amount of the final payment will change. ACCRUAL METHOD: Interest will be calculated on a actual/360 basis. POST MATURITY RATE: I agree to pay interest on the unpaid balance of this note owing after maturity, and until paid in full, as stated below: [X] on the same fixed or variable rate basis in effect before maturity (as indicated above). [ ] at a rate equal to ________ [X] LATE CHARGE: If a payment is made more than 14 days after it is due, I agree to pay a late charge of $21.00 or 5.00% of the stated payment, whichever is greater. [ ] ADDITIONAL CHARGES: In addition to interest, I agree to pay the following charges which [ ] are [ ] are not included in the principal amount above: PAYMENTS: I agree to pay this note as follows: [ ] Interest: I agree to pay accrued interest ____________________________ [ ] Principal: I agree to pay the principal ____________________________ [X] Installments: I agree to pay this note in 180 payments. The first payment will be in the amount of $481.76 and will be due November 30, 2010. A payment of $481.76 will be due on the 30th day of each month thereafter. The final payment of the entire unpaid balance of principal and interest will be due October 30, 2025. PURPOSE: The purpose of this loan is PURCHASE COMMERCIAL PROPERTY ADDITIONAL TERMS: SECURITY SECURITY INTEREST: I give you a security interest in all of the Property described below that I own or have sufficient rights in which to transfer an interest, now or in the future, wherever the Property is or will be located, and all proceeds and products of the Property. "Property" includes all parts, accessories, repairs, replacements, improvements, and accessions to the Property; any original evidence of title or ownership; and all obligations that support the payment or performance of the Property. "Proceeds" includes everything acquired upon the sale, lease, license, exchange, or other disposition of the Property; any rights and claims arising from the Property; and any collections and distributions on account of the Property. ☐ Accounts and Other Rights to Payment: All rights to payment, whether or not earned by performance, including, but not limited to, payment for property or services sold, leased, rented, licensed, or assigned. This includes any rights and interests (including all liens) which I have by law or agreement against any account debtor or obligor. ☐ Inventory: All inventory held for ultimate sale or lease, or which has been or will be supplied under contracts of service, or which are raw materials, work in process, or materials used or consumed in my business. ☐ Equipment: All equipment including, but not limited to, machinery, vehicles, furniture, fixtures, manufacturing equipment, farm machinery and equipment, shop equipment, office and record keeping equipment, parts, and tools. The Property includes any equipment described in a list or schedule I give to you, but such a list is not necessary to create a valid security interest in all of my equipment. ☐ Instruments and Chattel Paper: All instruments, including negotiable instruments and promissory notes and any other writings or records that evidence the right to payment of a monetary obligation, and tangible and electronic chattel paper. ☐ General Intangibles: All general intangibles including, but not limited to, tax refunds, patents and applications for patents, copyrights, trademarks, trade secrets, goodwill, trade names, customer lists, permits and franchises, payment intangibles, computer programs and all supporting information provided in connection with a transaction relating to computer programs, and the right to use my name. ☐ Documents: All documents of title including, but not limited to, bills of lading, dock warrants and receipts, and warehouse receipts. ☐ Farm Products and Supplies: All farm products including, but not limited to, all poultry and livestock and their young, along with their produce, products, and replacements; all crops, annual or perennial, and all products of the crops; and all feed, seed, fertilizer, medicines, and other supplies used or produced in my farming operations. ☐ Government Payments and Programs: All payments, accounts, general intangibles, and benefits including, but not limited to, payments in kind, deficiency payments, letters of entitlement, warehouse receipts, storage payments, emergency assistance and diversion payments, production flexibility contracts, and conservation reserve payments under any preexisting, current, or future federal or state government program. ☐ Investment Property: All investment property including, but not limited to, certificated securities, uncertificated securities, securities entitlements, securities accounts, commodity contracts, commodity accounts, and financial assets. ☐ Deposit Accounts: All deposit accounts including, but not limited to, demand, time, savings, passbook, and similar accounts. ☒ Specific Property Description: The Property includes, but is not limited by, the following: FIRST REAL ESTATE MORTGAGE If this agreement covers timber to be cut, enter real estate description and record owner information: The Property will be used for a ☐ personal ☒ business ☐ agricultural ☐ ____________ purpose. Borrower/Owner State of organization/registration (if applicable) OKLAHOMA ADDITIONAL TERMS OF THE SECURITY AGREEMENT GENERALLY - This agreement secures this note and any other debt I have with you, now or later. However, it will not secure other debts if you fail with respect to such other debts, to make any required disclosure about this security agreement or if you fail to give any required notice of the right of rescission. If property described in this agreement is located in another state, this agreement may also, in some circumstances, be governed by the laws of the state in which the Property is located. NAME AND LOCATION - My name indicated on page 1 is my exact legal name. If I am an individual, my address is my principal residence. If I am not an individual, my address is the location of my chief executive offices or sole place of business. If I am an entity organized and registered under state law, my address is located in the state in which I am registered, unless otherwise indicated on page 2. I will provide verification of registration and location upon request. I will provide you with at least 30 days notice prior to any change in my name, address, or state of organization or registration. OWNERSHIP AND DUTIES TOWARD PROPERTY - I represent that I own all of the Property, or to the extent this is a purchase money security interest I will acquire ownership of the Property with the proceeds of the loan. I will defend it against any other claim. Your claim to the Property is ahead of the claims of any other creditor. I agree to do whatever you require to protect your security interest and to keep your claim in the Property above the claims of other creditors. I will not do anything to harm your position, nor will I use the Property for a purpose that will violate any laws or subject the Property to forfeiture or seizure. I will keep books, records and accounts about the Property and my business in general. I will let you examine these records at any reasonable time. I will prepare any report or accounting you request, which deals with the Property. I will keep the Property in my possession and will keep it in good repair. I will do only for the purposes described on page 1 of this agreement. I will not change this specified use without your express written permission. I represent that I am the original owner of the Property and, if I am not, that I have provided you with a list of prior owners of the Property. I will keep the Property at my address listed on page 1 of this agreement, unless we agree I may keep it at another location. If the Property is to be used in another state, I will give you a list of those states. I will not try to sell the Property unless it is inventory or I receive your written permission to do so. If I sell the Property I will have the payment made payable to the order of you and me. You may demand immediate payment of the debts(s) if the debtor is not a natural person and without your prior written consent; (1) a beneficial interest in the debtor is sold or transferred, or (2) there is a change in either the identity or number of members of a partnership, or (3) there is a change in ownership of more than 25 percent of the voting stock of a corporation. I will pay all taxes and charges on the Property as they become due. You have the right of reasonable access in order to inspect the Property. I will immediately inform you of any loss or damage to the Property. If I fail to perform any of my duties under this security agreement, or any mortgage, deed of trust, or other security interest, you may without notice to me perform the duties or cause them to be performed. Your right to perform for me shall not create an obligation to perform and your failure to perform will not preclude you from exercising any of your other rights under the law or this security agreement. PURCHASE MONEY SECURITY INTEREST - For the sole purpose of determining the extent of a purchase money security interest arising under this security agreement: (a) payments on any nonpurchase money loan also secured by this agreement will not be deemed to apply to the Purchase Money Loan, and (b) payments on the Purchase Money Loan will be deemed to apply first to the nonpurchase money loan of the loan, if any, and then to the purchase money obligations in the order of which the items of collateral were acquired or if acquired at the same time, in the order selected by you. No security interest will be terminated by application of this formula. "Purchase Money Loan" means any loan the proceeds of which, in whole or in part, are used to acquire any collateral described herein and all extensions, renewals, consolidations and refinancing of such loan. PAYMENTS BY LENDER - You are authorized to pay, on my behalf, charges I am or may become obligated to pay to preserve or protect the secured property (such as property insurance premiums). You may treat those payments as advances and add them to the unpaid principal under the note secured by this agreement or you may demand immediate payment of the amount advanced. With respect to "consumer loans" as defined in Okla. Stat. tit. 14A § 3-104, I will receive notice as required by Okla. Stat. tit. 14A § 3-104 before such sums are added to the other amounts secured by this agreement. With respect to all other loans, and if not otherwise required by law, no such notice is required before the advances are made and the duties are performed. INSURANCE - I agree to buy insurance on the Property against the risks and for the amounts you require and to furnish you continuing proof of coverage. I will have the insurance company name you as loss payee on any such policy. You may request added security if you agree that insurance proceeds may be applied to retain or replace the Property, I will buy insurance from a firm licensed to do business in the state where you are located. The firm will be reasonably acceptable to you. The insurance will last until the Property is released from this agreement. If I fail to buy or maintain the insurance (or fail to name you as loss payee) you may purchase yourself. WARRANTIES AND REPRESENTATIONS - If this agreement includes accounts, I will not settle any account for less than its full value without your written permission. I will collect all accounts unless you tell me otherwise. I will keep the proceeds from all the accounts and any goods which are returned to me or which I take back in trust for you. I will not mix them with any other property of mine. I will deliver them to you at your request. If you ask me to pay you the full price on any returned Any person who signs within this box does so to give you a security interest in the Property described on this page. This person does not promise to pay the note. "I" as used in this security agreement will include the borrower and any person who signs within this box. Date ____________________________ Signed ____________________________________ Experts © 1984, 1991 Bankers Systems, Inc., St Cloud, MN Form UNS-LAZ-OK 1/16/2001 items or items retaken by myself, I will do so. You may exercise my rights with respect to obligations of any account debtors, or other persons obligated on the Property, to pay or perform, and you may enforce any security interest that secures such obligations. If this agreement covers inventory, I will not dispose of it except in my ordinary course of business at the fair market value for the Property, or at a minimum price established by you in writing and signed by you. If this agreement covers farm products I will provide you, at your request, a written list of the buyers, commission merchants or selling agents to or through whom I may sell my farm products. In addition to those parties named on the written list, I authorize you to notify at your sole discretion any other person who receives your security interest in my farm products. I remain subject to all applicable penalties for selling my farm products in violation of my agreement with you and the Food Security Act. In this paragraph the terms farm products, buyers, commission merchants and selling agents have the meanings given to them under the Federal Food Security Act of 1965. If this agreement covers chattel paper or instruments, either as original collateral or proceeds of the Proceeds, I will note your interest on the face of the chattel paper or instruments. REMEDIES - I will be in default on this security agreement if I am in default on any note this agreement secures or if I fail to keep any promise contained in the terms of this agreement. If I default, you have all the rights and remedies provided in the note and under the Uniform Commercial Code. You may require me to make the secured property available to you at a place which is reasonably convenient to you in possession of the secured property and sell it as provided by law. The proceeds will be applied first to your expenses and then to the debt. I agree that 10 days written notice sent to my last known address by first class mail will be reasonable notice under the Uniform Commercial Code. My current address is on page 1. PERFECTION OF SECURITY INTEREST - I authorize you to file a financing statement covering the Property I will comply with, facilitate, and otherwise assist you in connection with obtaining possession of or control over the Property for purposes of perfecting your security interest under the Uniform Commercial Code. ADDITIONAL TERMS OF THE NOTE DEFINITIONS - As used on pages 1 and 2, "I" means the terms that apply to this loan, "I," "me" or "my" means each Borrower who signs this note and each other person or legal entity (including guarantors, endorsers, and sureties) who agrees to pay this note (together referred to as "us"). "You" or "your" means the Lender and its successors and assigns. APPLICABLE LAW - The law of the state of Oklahoma will govern this agreement. Any term of this agreement which is contrary to applicable law will not be effective, unless the law permits you and me to agree to such a variation. If any provision of this agreement cannot be enforced according to its terms, this fact will not affect the enforceability of the remainder of the agreement. No modification of this agreement may be made without your express written consent. Time is of the essence in this agreement. PAYMENTS - Each payment I make on this note will first reduce the amount I owe you for charges which are neither interest nor principal. The remainder of each payment will then reduce accrued unpaid interest, and then unpaid principal, if you and I agree to a different application of payments, which describe our agreement on this note. I may prepay a part of, or the entire balance of this loan without penalty, unless we specify to the contrary on this note. A partial repayment may not excuse or reduce any later scheduled payment until this note is paid in full (unless, when I make the prepayment, you and I agree in writing to the contrary). INTEREST - interest accrues on the principal remaining unpaid from time to time, until paid in full. If I receive the principal in more than one advance, each advance will start to earn interest only when I receive the advance. The "interest rate" as set forth on this note will only apply to the entire principal balance owed at that time. Notwithstanding anything to the contrary, I do not agree to you and you do not intend to charge any rate of interest that is higher than the maximum rate of interest you could charge under applicable law for the extension of credit that is agreed to in this note (either before or after maturity). If any notice of interest accrual is sent and is in error, we mutually agree to correct it, and if you actually collect more interest than allowed by law under this agreement, you agree to refund it to me. INDEX RATE - The index will serve only as a device for setting the interest rate on this note. You do not guarantee by selecting this index, or the margin, that the interest rate on this note will be the same rate you charge on any other loans or class of loans you make to me or other borrowers. POST MATURITY RATE - For purposes of deciding when the "Post Maturity Rate" (shown on page 1) applies, the term "maturity" means the date of your last scheduled payment indicated on page 1 of this note or the date you accelerate payment on this note whichever is earlier. SINGLE ADVANCE LOANS - If this is a single advance loan, you and I expect that you will make only one advance of principal. However, you may add other amounts to the principal if you make any payments described in the "PAYMENTS BY LENDER" paragraph on page 2. MULTIPLE ADVANCE LOANS - If this is a multiple advance loan, you and I expect that you will make more than one advance of principal. If this is closed end credit, repaying a part of the principal will not entitle me to additional credit. SET-OFF - I agree that you may set off any amount due and payable under this note against any right I have to receive money from you. *Right to receive money from you* means: (1) any deposit account balance I have with you; (2) any money owed to me on an item presented to you or in your possession for collection or exchange; and/or (3) any repurchase agreement or other nondeposit obligation. *Any amount due and payable under this note* means the total amount of which you are entitled to demand payment under the terms of this note or set your right off. This note indicates any balance due the date for which you properly accelerate under this note. If my right to receive money from you is also owned by someone who has not agreed to pay this note, your right of set-off will apply to my interest in the obligation and to any other amounts I could withdraw on my sole request or endorsement. Your right of set-off does not apply to any unpaid obligation, where my rights are only as a representative. It also does not apply to any Individual Retirement Account or other tax-deferred retirement accounts. You will not be liable for the dishonor of any check when the dishonor occurs because you set off this debt against any of my accounts. I agree to hold you harmless from any such claims arising as a result of your exercise of your set-off rights. DEFAULT *I will be in default* if any one or more of the following occur: (1) I fail to make a payment on time or in the amount due; (2) I fail to keep the Property insured, if required; (3) I fail to pay, or keep any promise, on any debt or agreement I have with you; (4) any other creditor of mine attempts to collect any debt I owe him through court proceedings; (5) I die, am declared incompetent, make an assignment for the benefit of creditors, or become insolvent (either because my liabilities exceed my assets or because unable to pay my debts as they become due); (6) I make a written statement about my financial condition that is untrue or inaccurate at the time it was provided; (7) I do or fail to do something which causes you to believe you will have difficulty collecting the amount I owe you; (8) any collateral securing this note is used in a manner or for a purpose which threatens confiscation by a legal authority; (9) I change my name or assume an additional name without first notifying you before making such a change; (10) I fail to plant, cultivate and harvest, in a reasonable season if I am a producer of crops; (11) any loan proceeds are used for a purpose that will contribute to excessive erosion of highly erodible land or to the conversion of wetlands to produce an agricultural commodity, as further explained in 7 C.F.R. Part 1940, Subpart G, Exhibit M. REMEDIES - If I am in default on this note you have, but are not limited to, the following remedies: (1) You may demand immediate payment of all I owe you under this note (principal, accrued unpaid interest and other accrued unpaid charges). (2) You may set off this debt against any right I have to the payment of money from you, subject to the terms of the "SET-OFF" paragraph herein. (3) You may demand security, additional security, or additional parties to be obligated to pay this note as a condition for not using any other remedy. (4) You may refuse to make advances to me or allow purchases on credit by me. (5) You may use any remedy you have under state or federal law. (6) You may make use of any remedy given to you in any agreement securing this note. By selecting any one or more of these remedies you do not give up your right to use later any other remedy. By waiving your right to declare an event to be a default, you do not waive your right to consider later the event and if it again continues, or happens again. COLLECTION COSTS AND ATTORNEY'S FEES - I agree to pay all costs of collection, expense or any similar type of cost if I am in default. In addition, if you hire an attorney to collect this note, I also agree to pay any fee you incur with such attorney plus court costs (except where prohibited by law). To the extent permitted by the United States Bankruptcy Code, I also agree to pay the reasonable attorney's fees and costs you incur to collect this debt as awarded by any court exercising jurisdiction under the Bankruptcy Code. WAIVER - I give up my rights to require you to do certain things. I will not require you to: (1) demand payment of amounts due (presentment); (2) obtain official certification of nonpayment (protest); or (3) give notice that amounts due have not been paid (notice of dishonor). I waive any defenses I have based on suretyship or impairment of collateral. OBLIGATIONS INDEPENDENT - I understand that I must pay this note even if someone else has also agreed to pay it (by, for example, signing this form or a separate guarantee or endorsement). You may sue me alone, or anyone else who is obligated on this note, or any number of us together, to collect this note. You may withhold your rights under this agreement without releasing any other party. If you give up any of your rights, with or without notice, it will not affect my duty to pay this note. Any extension of new credit to any of us, or renewal of this note by all or less than all of us will not release me from my duty to pay it. (Of course, you are entitled to only one payment in full.) I agree that you may at your option extend the term of the debt represented by this note, or any portion of the note or debt, from time to time without notice or notice and for any term without affecting my liability for payment of the note. I will not assign my obligation under this agreement without your prior written approval. FINANCIAL INFORMATION - I agree to provide you, upon request, any financial statement or information you may deem necessary. I warrant that the financial statements and information I provide to you are or will be accurate, correct and complete. SIGNATURES: I AGREE TO THE TERMS OF THIS NOTE (INCLUDING THOSE ON PAGES 1 AND 2). I have received a copy on today's date. [signature] CHRISTOPHER N CARTER [signature] THOMAS T. MERRILL VP RELATIONSHIP BANKER TREASURER'S ENDORSEMENT I hereby certify that I received $51,623.12 and issued receipt No 0786, therefore in payment of mortgage tax on the within mortgage. Dated this 3 day of NOV., 2010 County Treasurer Deputy After recording return to: ARMSTRONG BANK 1401 S MUSKOGEE PO BOX 788 TALEQUAH, OK 74464-0788 REAL ESTATE MORTGAGE (With Future Advance Clause) 1. DATE AND PARTIES. The date of this Mortgage is October 30, 2010, and the parties and their addresses are as follows: MORTGAGOR: CHRISTOPHER N. CARTER, A SINGLE PERSON. ☐ Refer to the Addendum which is attached and incorporated herein for additional Mortgagors. LENDER: ARMSTRONG BANK 1401 S. MUSKOGEE PO. BOX 788 TALEQUAH, OK .74464-0788 2. MORTGAGE. For good and valuable consideration, the receipt and sufficiency of which is acknowledged, and to secure the Secured Debt (hereafter defined), Mortgagor grants, bargains, conveys, sells and mortgages to Lender, with the power of sale (unless this Mortgage secures an extension of credit made primarily for an agricultural purpose where Mortgagor is either a natural person or a farm or ranching business corporation), the following described property: LOT 3, BLOCK 115 IN THE CITY OF TALEQUAH, CHEROKEE COUNTY, OKLAHOMA, ACCORDING TO THE RECORDED PLAT THEREOF The property is located in ....CHEROKEE ............................................. at ............................................................. 504 S WATER AVE .................................................. , TALEQUAH ......................................, Oklahoma ..74464 ................................. (Address) (City) (ZIP Code) Together with all rights, easements, appurtenances, royalties, mineral rights, oil and gas rights, crops, timber, all diversion payments or third party payments made to crop producers, and all existing and future improvements, structures, fixtures, and replacements that may now, or at any time in the future, be part of the real estate described above (all referred to as "Property"). The term Property also includes, but is not limited to, any and all water wells, water, ditches, reservoirs, reservoir sites and dams located on the real estate and all riparian and water rights associated with the Property, however established. 3. MAXIMUM OBLIGATION LIMIT. The total principal amount of the Secured Debt (hereafter defined) secured by this Mortgage at any one time shall not exceed $ 51,623.12 ............... . This limitation of amount does not include interest, loan charges, commitment fees, brokerage commissions, attorneys' fees and other charges validly made pursuant to this Mortgage and does not apply to advances (or interest accrued on such advances) made under the terms of this Mortgage to protect Lender's security and to perform any of the covenants contained in this Mortgage. Future advances are contemplated and, along with other future obligations, are secured by this Mortgage even though all or part may not yet be advanced. Nothing in this Mortgage, however, shall constitute a commitment to make additional or future loans or advances in any amount. Any such commitment would need to be agreed to in a separate writing. 4. SECURED DEBT DEFINED. The term "Secured Debt" includes, but is not limited to, the following: A. The promissory note(s), contract(s), guaranty(ies) or other evidence of debt described below and all extensions, renewals, modifications or substitutions (Evidence of Debt): Dated October 30, 2010 .... In The Amount Of..$51,623.12 ....................... Accruing At, A Variable Rate With A Maturity Date Of October 30, 2025 ......... Said Loan In The Name(s) Of CHISTOPHER N. CARTER .................................................... (e.g., borrower's name, note amount, interest rate, maturity date) B. All future advances from Lender to Mortgagor or other future obligations of Mortgagor to Lender under any promissory note, contract, guaranty, or other evidence of debt existing now or executed after this Mortgage whether or not this Mortgage is specifically referred to in the evidence of debt. C. All obligations Mortgagor owes to Lender, which now exist or may later arise, to the extent not prohibited by law, including, but not limited to, liabilities for overdrafts relating to any deposit account agreement between Mortgagor and Lender. D. All additional sums advanced and expenses incurred by Lender for insuring, preserving or otherwise protecting the Property and its value and any other sums advanced and expenses incurred by Lender under the terms of this Mortgage, plus interest at the highest rate in effect, from time to time, as provided in the Evidence of Debt. E. Mortgagor's performance under the terms of any instrument evidencing a debt by Mortgagor to Lender and any Mortgage securing, guaranteeing, or otherwise relating to the debt. If more than one person signs this Mortgage as Mortgagor, each Mortgagor agrees that this Mortgage will secure all future advances and future obligations described above that are given to or incurred by any one or more Mortgagor, or any one or more Mortgagor and others. This Mortgage will not secure any other debt if Lender fails, with respect to such other debt, to make any required disclosure about this Mortgage or if Lender fails to give any required notice of the right of rescission. 5. PAYMENTS. Mortgagor agrees to make all payments on the Secured Debt when due and in accordance with the terms of the Evidence of Debt or this Mortgage. 6. WARRANTY OF TITLE. Mortgagor covenants that Mortgagor is lawfully seized of the estate conveyed by this Mortgage and has the right to grant, bargain, convey, sell, and mortgage, with the power of sale (unless this Mortgage secures an extension of credit made primarily for an agricultural purpose where Mortgagor is either a natural person or a farm or ranching business corporation), the Property and warrants that the Property is unencumbered, except for encumbrances of record. 7. CLAIMS AGAINST TITLE. Mortgagor will pay all taxes, assessments, liens, encumbrances, lease payments, ground rents, utilities, and other charges relating to the Property when due. Lender may require Mortgagor to provide to Lender copies of all notices that such amounts are due and the receipts evidencing Mortgagor's payment. Mortgagor will defend title to the Property against any claims that would impair the lien of this Mortgage. Mortgagor agrees to assign to Lender, as requested by Lender, any rights, claims or defenses which Mortgagor may have against parties who supply labor or materials to improve or maintain the Property. 8. PRIOR SECURITY INTERESTS. With regard to any other mortgage, deed of trust, security agreement or other lien document that created a prior security interest or encumbrance on the Property and that may have priority over this Mortgage. Mortgagor agrees: A. To make all payments when due and to perform or comply with all covenants. B. To promptly deliver to Lender any notices that Mortgagor receives from the holder. C. Not to make or permit any modification or extension of, and not to request or accept any future advances under any note or agreement secured by, the other mortgage, deed of trust or security agreement unless Lender consents in writing. 9. DUE ON SALE OR ENCUMBRANCE. Lender may, at its option, declare the entire balance of the Secured Debt to be immediately due and payable upon the creation of any lien, encumbrance, transfer, or sale, or contract for any of these on the Property. However, if the Property includes Mortgagor's residence, this section shall be subject to the restrictions imposed by federal law (12 C.F.R. 591), as applicable. For the purposes of this section, the term "Property" also includes any interest to all or any part of the Property. This covenant shall run with the Property and shall remain in effect until the Secured Debt is paid in full and this Mortgage is released. 10. TRANSFER OF AN INTEREST IN THE MORTGAGOR. If Mortgagor is an entity other than a natural person (such as a corporation or other organization), Lender may demand immediate payment if (1) a beneficial interest in Mortgagor is sold or transferred; (2) there is a change in either the identity or number of members of a partnership or similar entity; or (3) there is a change in ownership of more than 25 percent of the voting stock of a corporation or similar entity. However, Lender may not demand payment in the above situations if it is prohibited by law as of the date of this Mortgage. 11. ENTITY WARRANTIES AND REPRESENTATIONS. If Mortgagor is an entity other than a natural person (such as a corporation or other organization), Mortgagor makes to Lender the following warranties and representations which shall be continuing as long as the Secured Debt remains outstanding: A. Mortgagor is an entity which is duly organized and validly existing in the Mortgagor's state of incorporation (or organization). Mortgagor is in good standing in all states in which Mortgagor transacts business. Mortgagor has the power and authority to own the Property and to carry on its business as now being conducted and, as applicable, is qualified to do so in each state in which Mortgagor operates. B. The execution, delivery and performance of this Mortgage by Mortgagor and the obligation evidenced by the Evidence of Debt are within the power of Mortgagor, have been duly authorized, have received all necessary governmental approval, and will not violate any provision of law, or order of court or governmental agency. C. Other than disclosed in writing Mortgagor has not changed its name within the last ten years and has not used any other trade or fictitious name. Without Lender's prior written consent, Mortgagor does not and will not use any other name and will preserve its existing name, trade names and franchises until the Secured Debt is satisfied. 12. PROPERTY CONDITION, ALTERATIONS AND INSPECTION. Mortgagor will keep the Property in good condition and make all repairs that are reasonably necessary. Mortgagor will give Lender prompt notice of any loss or damage to the Property. Mortgagor will keep the Property free of noxious weeds and grasses. Mortgagor will not initiate, join in or consent to any change in any private restrictive covenant, zoning ordinance or other public or private restriction limiting or defining the uses which may be made of the Property or any part of the Property, without Lender's prior written consent. Mortgagor will notify Lender of all demands, proceedings, claims, and actions against Mortgagor or any other owner made under law or regulation regarding use, ownership and occupancy of the Property. Mortgagor will comply with all legal requirements and restrictions, whether public or private, with respect to the use of the Property. Mortgagor also agrees that the nature of the occupancy and use will not change without Lender's prior written consent. No portion of the Property will be removed, demolished or materially altered without Lender's prior written consent except that Mortgagor has the right to remove items of personal property comprising a part of the Property that become worn or obsolete, provided that such personal property is replaced with other personal property at least equal in value to the replaced personal property, free from any title retention device, security agreement or other encumbrance. Such replacement of personal property will be deemed subject to the security interest created by this Mortgage. Mortgagor shall not partition or subdivide the Property without Lender's prior written consent. Lender or Lender's agents may, at Lender's option, enter the Property at any reasonable time for the purpose of inspecting the Property. Any inspection of the Property shall be entirely for Lender's benefit and Mortgagor will in no way rely on Lender's inspection. 13. AUTHORITY TO PERFORM. If Mortgagor fails to perform any of Mortgagor's duties under this Mortgage, or any other mortgage, deed of trust, security agreement or other lien document that has priority over this Mortgage, Lender may, without notice, perform the duties or cause them to be performed. Mortgagor appoints Lender as attorney in fact to sign Mortgagor’s name or pay any amount necessary for performance. If any construction on the Property is discontinued or not carried on in a reasonable manner, Lender may do whatever is necessary to protect Lender's security interest in the Property. This may include completing the construction. Lender's right to perform for Mortgagor shall not create an obligation to perform, and Lender's failure to perform will not preclude Lender from exercising any of Lender’s other rights under the law or this Mortgage. Any amounts paid by Lender for insuring, preserving or otherwise protecting the Property and Lender's security interest will be due on demand and will bear interest from the date of the payment until paid in full at the interest rate in effect from time to time according to the terms of the Evidence of Debt. 14. ASSIGNMENT OF LEASES AND RENTS. Mortgagor grants, bargains, sells and conveys as additional security all the right, title and interest in and to any and all: A. Existing or future leases, subleases, licenses, guaranties and any other written or verbal agreements for the use and occupancy of any portion of the Property, including any extensions, renewals, modifications or substitutions of such agreements (all referred to as "Leases"); B. Rents, issues and profits (all referred to as "Rents"), including but not limited to security deposits, minimum rent, percentage rent, additional rent, common area maintenance charges, parking charges, real estate taxes, other applicable taxes, insurance premium contributions, liquidated damages following default, cancellation premiums, "loss of rents" insurance, guest receipts, revenues, royalties, proceeds, bonuses, accounts, contract rights, general intangibles, and all rights and claims which Mortgagor may have that in any way pertain to or are on account of the use or occupancy of the whole or any part of the Property. Mortgagor will promptly provide Lender with true and correct copies of all existing and future Leases. Mortgagor may collect, receive, enjoy and use the Rents so long as Mortgagor is not in default. Mortgagor will not collect in advance any Rents due in future lease periods, unless Mortgagor first obtains Lender's written consent. Upon default, Mortgagor will receive any Rents in trust for Lender and Mortgagor will not commingle the Rents with any other funds. Any amounts collected shall be applied at Lender's discretion to payments on the Secured Debt as therein provided, to costs of managing the Property, including, but not limited to, all taxes, assessments, insurance premiums, repairs, and commissions to rental agents, and to any other necessary related expenses including Lender's attorneys' fees and court costs. Mortgagor agrees that this assignment is immediately effective between the parties to this assignment and effective as to third parties on Mortgagor’s default when Lender takes actual possession of the Property, when a receiver is appointed, when rents are sequestered as or the law otherwise provides, and this assignment will remain effective during any redemption period until the Secured Debt is satisfied. Unless otherwise prohibited or prescribed by state law, Mortgagor agrees that Lender may take actual possession of the Property without the necessity of commencing any legal action or proceeding and Mortgagor agrees that actual possession of the Property is deemed to occur when Lender notifies Mortgagor of the default and demands that Mortgagor and Mortgagor's tenants pay all Rents due and to become due directly to Lender. On receiving the notice of default, Mortgagor will endorse and deliver to Lender any payments of Rents. Mortgagor covenants that no default exists under the Leases or any applicable landlord law. Mortgagor also covenants and agrees to maintain, and to require the tenants to comply with, the Leases and any applicable law. Mortgagor will promptly notify Lender of any noncompliance. If Mortgagor neglects or refuses to enforce compliance with the terms of the Leases, then Lender may, at Lender's option, enforce compliance. Mortgagor will obtain Lender’s written authorization before Mortgagor consents to sublet, modify, cancel, or otherwise alter the Leases, to accept the surrender of the Property covered by such Leases (unless the Leases so require), or to assign, compromise or encumber the Leases or any future Rents. Mortgagor will hold Lender harmless and indemnify Lender for any and all liability, loss or damage that Lender may incur as a consequence of the assignment under this section. This section applies only if this Mortgage does not secure an extension of credit made primarily for an agricultural purpose where Mortgagor is either a natural person or a farm or ranching business corporation. 15. CONDOMINIUMS; PLANNED UNIT DEVELOPMENTS. If the Property includes a unit in a condominium or a planned unit development, Mortgagor will perform all of Mortgagor’s duties under the covenants, by-laws, or regulations of the condominium or planned unit development. 16. DEFAULT. Mortgagor will be in default if any of the following occur: A. Any party obligated on the Secured Debt fails to make payment when due; B. A breach of any term or covenant in this Mortgage, any prior mortgage or any construction loan agreement, security agreement or any other document evidencing, guarantying, securing or otherwise relating to the Secured Debt; C. The making or furnishing of any verbal or written representation, statement or warranty to Lender that is false or incorrect in any material respect by Mortgagor or any person or entity obligated on the Secured Debt; D. The death, dissolution, or insolvency of, appointment of a receiver for, or application of any debtor relief law to, Mortgagor or any person or entity obligated on the Secured Debt; E. A good faith belief by Lender at any time that Lender is insecure with respect to any person or entity obligated on the Secured Debt or that the prospect of any payment is impaired or the value of the Property is impaired; F. A material adverse change in Mortgagor’s business including ownership, management, and financial conditions, which Lender in its opinion believes impairs the value of the Property or repayment of the Secured Debt; or G. Any loan proceeds are used for a purpose that will contribute to excessive erosion of highly erodible land or to the conversion of wetlands to produce an agricultural commodity, as further explained in 7 C.F.R. Part 1940, Subpart G, Exhibit M. 17. REMEDIES ON DEFAULT. In some instances, federal and state law will require Lender to provide Mortgagor with notice of the right to cure, mediation notices or other notices and may establish time schedules for foreclosure actions. Subject to these limitations, if any, Lender may accelerate the Secured Debt and foreclose this Mortgage in a manner provided by law if this Mortgagor is in default. At the option of Lender, all or any part of the agreed fees and charges, accrued interest and principal shall become immediately due and payable, after giving notice if required by law, upon the occurrence of a default or anytime thereafter. In addition, Lender shall be entitled to all the remedies provided by law, the Evidence of Debt, other evidences of debt, this Mortgage and any related documents, including the power to sell the Property. All remedies are distinct, cumulative and not exclusive, and the Lender is entitled to all remedies provided at law or equity, whether expressly set forth or not. The acceptance by Lender of any sum in payment or partial payment on the Secured Debt after the balance is due or is accelerated or after foreclosure proceedings are filed shall not constitute a waiver of Lender's right to require full and complete cure of any existing default. By not exercising any remedy on Mortgagor's default, Lender does not waive Lender's right to later consider the event a default if it continues or happens again. If the Property does not secure an extension of credit made primarily for an agricultural purpose where Mortgagor is either a natural person or a farm or ranching business corporation. Lender has the power to sell the Property. If Lender invokes the power of sale, Lender shall give notice in the manner required by applicable law to Mortgagor and any other persons prescribed by law. Lender shall also publish the notice of sale, and the Property shall be sold, as prescribed by applicable law. Lender or its designee may purchase the Property at any sale. The proceeds of the sale shall be applied in the manner prescribed by applicable law. 18. EXPENSES; ADVANCES ON COVENANTS; ATTORNEYS' FEES; COLLECTION COSTS. Except when prohibited by law, Mortgagor agrees to pay all of Lender's expenses if Mortgagor breaches any covenant in this Mortgage. Mortgagor will also pay on demand all of Lender's expenses incurred in collecting, insuring, preserving or protecting the Property or in any inventories, audits, inspections or other examination by Lender in respect to the Property. Mortgagor agrees to pay all costs and expenses incurred by Lender in enforcing or protecting Lender's rights and remedies under this Mortgage, including, but not limited to, attorneys' fees, court costs, and other legal expenses. All such amounts are due on demand and will bear interest from the time of the advance at the highest rate in effect, from time to time, as provided in the Evidence of Debt and as permitted by law. Once the Secured Debt is fully and finally paid, Lender agrees to release this Mortgage. 19. ENVIRONMENTAL LAWS AND HAZARDOUS SUBSTANCES. As used in this section, (1) "Environmental Law" means, without limitation, the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA, 42 U.S.C. 9601 et seq.), all other federal, state and local laws, regulations, ordinances, court orders, attorney general opinions or interpretive letters concerning the public health, safety, welfare, environment or a hazardous substance; and (2) "Hazardous Substance" means any toxic, radioactive or hazardous material, waste, pollutant or contaminant which has characteristics which render the substance dangerous or potentially dangerous to the public health, safety, welfare or environment. The term includes, without limitation, any substances defined as "hazardous material," "toxic substances," "hazardous waste" or "hazardous substance" under any Environmental Law. Mortgagor represents, warrants and agrees that, except as previously disclosed and acknowledged in writing: A. No Hazardous Substance has been, is, or will be located, transported, manufactured, treated, refined, or handled by any person on, under or about the Property, except in the ordinary course of business and in strict compliance with all applicable Environmental Law. B. Mortgagor has not and will not cause, contribute to, or permit the release of any Hazardous Substance on the Property. C. Mortgagor will immediately notify Lender if (1) a release or threatened release of Hazardous Substance occurs on, under or about the Property or migrates or threatens to migrate from nearby property; or (2) there is a violation of any Environmental Law concerning the Property. In such an event, Mortgagor will take all necessary remedial action in accordance with Environmental Law. D. Mortgagor has no knowledge or reason to believe there is any pending or threatened investigation, claim, or proceeding of any kind relating to (1) any Hazardous Substance located on, under or about the Property; or (2) any violation by Mortgagor or any tenant of any Environmental Law. Mortgagor will immediately notify Lender in writing as soon as Mortgagor has reason to believe there is any such pending or threatened investigation, claim, or proceeding. In such an event, Lender has the right, but not the obligation, to participate in any such proceeding including the right to receive copies of any documents relating to such proceedings. E. Mortgagor and every tenant have been, are and shall remain in full compliance with any applicable Environmental Law. F. There are no underground storage tanks, private dumps or open wells located on or under the Property and no such tank, dump or well will be added unless Lender first consents in writing. G. Mortgagor will regularly inspect the Property, monitor the activities and operations on the Property, and confirm that all permits, licenses or approvals required by any applicable Environmental Law are obtained and complied with. H. Mortgagor will permit, or cause any tenant to permit, Lender or Lender's agent to enter and inspect the Property and review all records at any reasonable time to determine (1) the existence, location and nature of any Hazardous Substance on, under or about the Property; (2) the existence, location, nature, and magnitude of any Hazardous Substance that has been released on, under or about the Property; or (3) whether or not Mortgagor and any tenant are in compliance with applicable Environmental Law. I. Upon Lender's request and at any time, Mortgagor agrees, at Mortgagor's expense, to engage a qualified environmental engineer to prepare an environmental audit of the Property and to submit the results of such audit to Lender. The choice of the environmental engineer who will perform such audit is subject to Lender's approval. J. Lender has the right, but not the obligation, to perform any of Mortgagor's obligations under this section at Mortgagor's expense. K. As a consequence of any breach of any representation, warranty or promise made in this section, (1) Mortgagor will indemnify and hold Lender and Lender's successors or assigns harmless from and against all losses, claims, demands, liabilities, damages, cleanup, response and remediation costs, penalties and expenses, including without limitation all costs of litigation and attorneys' fees, which Lender and Lender's successors or assigns may sustain; and (2) at Lender's discretion, Lender may release this Mortgage and in return Mortgagor will provide Lender with collateral of at least equal value to the Property secured by this Mortgage without prejudice to any of Lender's rights under this Mortgage. L. Notwithstanding any of the language contained in this Mortgage to the contrary, the terms of this section shall survive any foreclosure or satisfaction of this Mortgage regardless of any passage of title to Lender or any disposition by Lender of any or all of the Property. Any claims and defenses to the contrary are hereby waived. 20. CONDEMNATION. Mortgagor will give Lender prompt notice of any action, real or threatened, by private or public entities to purchase or take any or all of the Property, including any easements, through condemnation, eminent domain, or any other means. Mortgagor further agrees to notify Lender of any proceedings instituted for the establishment of any sewer, water, conservation, ditch, drainage, or other district relating to or binding upon the Property or any part of it. Mortgagor authorizes Lender to intervene in Mortgagor's name in any of the above described actions or claims and to collect and receive all sums resulting from the action or claim. Mortgagor assigns to Lender the proceeds of any award or claim for damages connected with a condemnation or other taking of all or any part of the Property. Such proceeds shall be considered payments and will be applied as provided in this Mortgage. This assignment of proceeds is subject to the terms of any prior mortgage, deed of trust, security agreement or other lien document. 21. INSURANCE. Mortgagor agrees to maintain insurance as follows: A. Mortgagor shall keep the improvements now existing or hereafter built on the Property insured against loss by fire, hazards included within the term "extended coverage" and any other hazards, including floods or flooding, for which Lender requires insurance. This insurance shall be maintained in the amounts and for the periods that Lender requires. What Lender requires pursuant to the preceding two sentences can change during the term of the Secured Debt. The insurance carrier providing the insurance shall be chosen by Mortgagor subject to Lender's approval, which shall not be unreasonably withheld. If Mortgagor fails to maintain the coverage described above, Lender may, at Lender's option, obtain coverage to protect Lender's rights in the Property according to the terms of this Mortgage. All insurance policies and renewals shall be acceptable to Lender and shall include a standard "mortgage clause" and, where applicable, "lender loss payee clause." Mortgagor shall immediately notify Lender of cancellation or termination of the insurance. Lender shall have the right to hold the policies and renewals. If Lender requires, Mortgagor shall immediately give to Lender all receipts of paid premiums and renewal notices. Upon loss, Mortgagor shall give immediate notice to the insurance carrier and Lender. Lender may make proof of loss if not made immediately by Mortgagor. Unless Lender and Mortgagor otherwise agree in writing, insurance proceeds shall be applied to restoration or repair of the Property damaged if the restoration or repair is economically feasible and Lender's security is not lessened. If the restoration or repair is not economically feasible or Lender's security would be lessened, the insurance proceeds shall be applied to the Secured Debt, whether or not then due, with any excess paid to Mortgagor. If Mortgagor abandons the Property, or does not answer within 30 days a notice from Lender that the insurance carrier has offered to settle a claim, then Lender may collect the insurance proceeds. Lender may use the proceeds to repair or restore the Property or to pay the Secured Debt whether or not then due. The 30-day period will begin when the notice is given. Unless Lender and Mortgagor otherwise agree in writing, any application of proceeds to principal shall not extend or postpone the due date of scheduled payments or change the amount of the payments. If the Property is acquired by Lender, Mortgagor's right to any insurance policies and proceeds resulting from damage to the Property before acquisition shall pass to Lender to the extent of the Secured Debt immediately before the acquisition. B. Mortgagor agrees to maintain comprehensive general liability insurance naming Lender as an additional insured in an amount acceptable to Lender, insuring against claims arising from any accident or occurrence in or on the Property. Mortgagor agrees to maintain rental loss or business interruption insurance, as required by Lender, in an amount equal to at least coverage of one year's debt service, and required escrow account deposits (if agreed to separately in writing), under a form of policy acceptable to Lender. 22. NO ESCROW FOR TAXES AND INSURANCE. Unless otherwise provided in a separate agreement, Mortgagor will not be required to pay to Lender funds for taxes and insurance in escrow. 23. FINANCIAL REPORTS AND ADDITIONAL DOCUMENTS. Mortgagor will provide to Lender upon request, any financial statement or information Lender may deem necessary. Mortgagor warrants that all financial statements and information Mortgagor provides to Lender are, or will be, accurate, correct, and complete. Mortgagor agrees to sign, deliver, and file as Lender may reasonably request any additional documents or certifications that Lender may consider necessary to perfect, continue, and preserve Mortgagor's obligations under this Mortgage and Lender's lien status on the Property. If Mortgagor fails to do so, Lender may sign, deliver, and file such documents or certificates in Mortgagor's name and Mortgagor hereby irrevocably appoints Lender or Lender's agent as attorney in fact to do the things necessary to comply with this section. 24. JOINT AND INDIVIDUAL LIABILITY; CO-SIGNERS; SUCCESSORS AND ASSIGNS BOUND. All duties under this Mortgage are joint and individual. If Mortgagor signs this Mortgage but does not sign the Evidence of Debt, Mortgagor does so only to mortgage Mortgagor's interest in the Property to secure payment of the Secured Debt and Mortgagor does not agree to be personally liable on the Secured Debt. Mortgagor agrees that Lender and any party to this Mortgage may extend, modify or make any change in the terms of this Mortgage or the Evidence of Debt without Mortgagor's consent. Such a change will not release Mortgagor from the terms of this Mortgage. The duties and benefits of this Mortgage shall bind and benefit the successors and assigns of Mortgagor and Lender. If this Mortgage secures a guaranty between Lender and Mortgagor and does not directly secure the obligation which is guaranteed, Mortgagor agrees to waive any rights that may prevent Lender from bringing any action or claim against Mortgagor or any party indebted under the obligation including, but not limited to, anti-deficiency or one-action laws. 25. APPLICABLE LAW; SEVERABILITY; INTERPRETATION. This Mortgage is governed by the laws of the jurisdiction in which Lender is located, except to the extent otherwise required by the laws of the jurisdiction where the Property is located. This Mortgage is complete and fully integrated. This Mortgage may not be amended or modified by oral agreement. Any section or clause in this Mortgage, attachments, or any agreement related to the Secured Debt that conflicts with applicable law will not be effective, unless that law expressly or impliedly permits the variations by written agreement. If any section or clause of this Mortgage cannot be enforced according to its terms, that section or clause will be severed and will not affect the enforceability of the remainder of this Mortgage. Whenever used, the singular shall include the plural and the plural the singular. The captions and headings of the sections of this Mortgage are for convenience only and are not to be used to interpret or define the terms of this Mortgage. Time is of the essence in this Mortgage. 26. NOTICE. Unless otherwise required by law, any notice shall be given by delivering it or by mailing it by first class mail to the appropriate party's address on page 1 of this Mortgage, or to any other address designated in writing. Notice to one mortgagor will be deemed to be notice to all mortgagors. 27. WAIVER OF APPRAISEMENT. Appraisal of the Property is waived or not waived at Lender's option, which shall be exercised before or at the time judgment is entered in any foreclosure. 28. U.C.C. PROVISIONS. If checked, the following are applicable to, but do not limit, this Mortgage: ☐ Construction Loan. This Mortgage secures an obligation incurred for the construction of an improvement on the Property. ☐ Fixture Filing. Mortgagor grants to Lender a security interest in all goods that Mortgagor owns now or in the future and that are or will become fixtures related to the Property. ☐ Crops; Timber; Minerals; Rents, Issues, and Profits. Mortgagor grants to Lender a security interest in all crops, timber and minerals located on the Property as well as all rents, issues, and profits of them including, but not limited to, all Conservation Reserve Program (CRP) and Payment in Kind (PIK) payments and similar governmental programs (all of which shall also be included in the term "Property"). ☐ Personal Property. Mortgagor grants to Lender a security interest in all personal property located on or connected with the Property. This security interest includes all farm products, inventory, equipment, accounts, documents, instruments, chattel paper, general intangibles, and all other items of personal property Mortgagor owns now or in the future and that are used or useful in the construction, ownership, operation, management, or maintenance of the Property. The term "personal property" specifically excludes that property described as "household goods" secured in connection with a "consumer" loan as those terms are defined in applicable federal regulations governing unfair and deceptive credit practices. ☐ Filing As Financing Statement. Mortgagor agrees and acknowledges that this Mortgage also suffices as a financing statement and as such, may be filed of record as a financing statement for purposes of Article 9 of the Uniform Commercial Code. A carbon, photographic, image or other reproduction of this Mortgage is sufficient as a financing statement. 29. OTHER TERMS. If checked, the following are applicable to this Mortgage: ☐ Line of Credit. The Secured Debt includes a revolving line of credit provision. Although the Secured Debt may be reduced to a zero balance, this Mortgage will remain in effect until released. ☐ Agricultural Property. Mortgagor covenants and warrants that the Property will be used principally for agricultural or farming purposes and that Mortgagor is an individual or entity allowed to own agricultural land as specified by law. ☐ Separate Assignment. A separate assignment of leases and rents has been executed by the Mortgagor. The section in this Mortgage titled Assignment of Leases and Rents is superseded and is of no effect. ☐ Purchase Money Mortgage. The Secured Debt includes money which is used in whole or in part to purchase the Property. ☐ Additional Terms. .................................................................................................................................................................................... ............................................................................................................................................................................................................................................ POWER OF SALE NOTICE. The following notice applies unless this Mortgage secures an extension of credit made primarily for an agricultural purpose where Mortgage is either a natural person or a farm or ranching business corporation: A POWER OF SALE HAS BEEN GRANTED IN THIS MORTGAGE. A POWER OF SALE MAY ALLOW THE MORTGAGEE TO TAKE THE MORTGAGED PROPERTY AND SELL IT WITHOUT GOING TO COURT IN A FORECLOSURE ACTION UPON DEFAULT BY THE MORTGAGOR UNDER THIS MORTGAGE. SIGNATURES: By signing below, Mortgagor agrees to the terms and covenants contained in this Mortgage and in any attachments. Mortgagor also acknowledges receipt of a copy of this Mortgage on the date stated above on Page 1. ☐ Actual authority was granted to the parties signing below by resolution signed and dated ............................................. Entity Name: .......................................................... Entity Name: .......................................................... (Signature) (Date) (Signature) (Date) CHRISTOPHER N CARTER ............................................ Denise Ballard ............................................. (Signature) (Date) (Signature) (Date) ☐ Refer to the Addendum which is attached and incorporated herein for additional Mortgagors, signatures and acknowledgments. ACKNOWLEDGMENT: STATE OF ....OKLAHOMA............................, COUNTY OF .....CHEROKEE............................... } ss. (individual) This instrument was acknowledged before me this ______30th_____ day of ..........October.....2010............. by ....CHRISTOPHER N CARTER............................................................... My commission expires: 6/22/12 Commission number: 0008698 (SEAL) Denise Ballard (Notary Public) STATE OF ............................................., COUNTY OF .......................................................... } ss. (Business or Entity Acknowledgment) This instrument was acknowledged before me this ............. day of ......................................................... by ......................................................... ............................................. (Title(s)) a ............................................................ (Name of Business or Entity) My commission expires: Commission number: (SEAL) (Notary Public)